–The memo’s findings were so bad, even Hillary Clinton rejected a carbon tax–
As congress considers the Scalise/McKinley anti-carbon-tax resolution today, members of both parties should cite a 2015 carbon tax memo prepared for then-candidate Hillary Clinton which shows that a carbon tax would be devastating to low income households.
The Hillary Clinton memo stated that a carbon tax would be passed on to consumers, would have a disproportionate impact on low income households, would cause gas prices to increase 40 cents a gallon, would cause electricity prices to increase 12%-21%, would cause household energy bills to go up $480 a year, and would increase the cost of household goods and services. (See the actual memo excerpts below).
It was so bad, even Hillary Clinton decided against a carbon tax.
The Hillary memo states the cost of the carbon tax will be passed on to consumers: “While oil, natural gas, and coal companies would be responsible for paying the fee, they would likely pass a significant share of the associated cost on to their customers.”
The Hillary memo states that a carbon tax would have a disproportionate impact on low income households: “As with the increase in energy costs, the increase in the cost of nonenergy goods and services would disproportionately impact low income households.”
The Hillary memo states that a carbon tax would cause gas prices increase 40 cents a gallon and residential electricity prices to increase 12% – 21%: “In our analysis, for example, a $42/ton GHG fee increases gasoline prices by roughly 40 cents per gallon on average between 2020 and 2030 and residential electricity prices by 2.6 cents per kWh, 12% and 21% above levels projected in the EIA’s 2014 Annual Energy Outlook respectively.
The Hillary memo states a carbon tax would cause household energy bills to go up significantly: “Average household energy costs would increase by roughly $480 per year, or 10% relative to the levels projected in EIA’s 2014 Outlook.”
The Hillary memo states that a carbon tax would increase the cost of household goods and services: “The cost of other household goods and services would increase as well as companies pass forward the higher energy costs paid to produce those goods and services on to consumers.”
Source: MEMORANDUM FOR HILLARY RODHAM CLINTON
Date of Memo: Jan. 20, 2015